Question

In 2019, Carson is claimed as a dependent on his parents' tax return. Carson's parents provided most of his support. What is Carson's tax liability for the year in each of the following alternative circumstances?

b. Carson is 23 years old at year-end. He is a full tome student and earned $14,000 from gis summer internahip and part-time job. He also received $5,000 of qualified dividend income.

Answer 1

Carson's $14,000 earned from gis summer internahip and part-time job will be taxed in the hands of Carson itself.

Inclusion of $5,000 received of qualified dividend income in Carson's earnings will depend on it source of investing. If the investment required for this was provided by Carson's parents, then it will be clubbed in his Parent's income, otherwise in Carson's income.